Italy has revealed that it will carry out investments that will lead to a stabilization of Tunisia while also pledging to negotiate a bailout fund for the country from the International Monetary Fund.
Antonio Tajani, Foreign Minister of Italy, outlined Italy´s efforts and pledged during a meeting with his Tunisian counterpart, Nabil Ammar, who pressed that Tunisia has seen growing numbers of African migrants coming from the Libyan border and needs financial help.
“Our proposition is very clear to the Monetary Fund and our interlocutors, American and European. We propose to start funding Tunisia through the Monetary Fund.
“We are concluding on bringing 4,000 Tunisian workers to work in Italy, who will be trained in Tunisia. Tunisia is the first country with which we are executing this project, added Antonio Tajani.
The Organization for Economic Cooperation and Development says Tunisia is undergoing its worst predicament in a generation, with inflation looming at around 11% and food increasingly scarce. The government is discussing a $2 billion to $4 billion loan with the IMF to cope with a budget shortage worsened by the COVID-19 pandemic and fallout from Russia´s war in Ukraine.
But in return for a deal, Tunisia would have to commit to painful changes, including contracting the public management sector – one of the world´s largest – which consumes about a third of the state budget. The IMF also is requiring the incremental lifting of subsidies and the privatization of state-owned enterprises, which implies massive redundancies and a worsening of unemployment.
Tajani pledged to work on Tunisia´s behalf in negotiations with the IMF, repeating Italy´s proposition that the loan be delivered in two portions and not be fully reliant on all reforms being in place. Italy wants a stable and thriving Tunisia because it has become a major point of departure for some of the 31,000 migrants who have reached Italy so far this year.
“For us, the fundamental point is to ensure the stability of Tunisia,” Tajani said.
